ACT Is Being Acquired by Former SAT Administrator ETS

Summary:

Educational Testing Services (ETS) has acquired ACT to expand educational and career resources amidst declining test participation, with ACT's annual participation decreasing by ~27% since 2019. Students should not expect immediate disruptions to scheduled test dates and scoring, but ETS's deep infrastructure and commitment to school-based, career, and workforce readiness can change ACT's position in standardized testing.

In a joint press release, ACT announced it has been acquired by Educational Testing Service (ETS). This acquisition brings together two of the biggest names in educational services and standardized testing.

What is ETS?

ETS is one of the largest private educational testing and assessment organizations in the country. ETS owns and administers the GRE (the graduate school entrance exam) and the TOEFL (the English-proficiency exam).

The twist worth noting in this recent news: until recently, ETS was also the organization that administered the SAT on behalf of the College Board. The history is part of what makes this deal so notable; the company now buying SAT’s biggest rival used to run the SAT itself.

Why is ACT Being Acquired?

“Every student deserves a strong education, a fair shot at college, and a path to a good job,” said Amit Sevak, CEO of ETS, in the acquisition announcement. “Together with ACT, we’re determined to serve students and parents along with educators and states by expanding access to education and job opportunities across America.”

The business reality and shifts in the standardized testing landscape can give us a better idea of what motivated the acquisition. Participation in college-entrance exams has been declining for years, even predating the test-optional era. Pre-pandemic, ACT participation was approximately 1.78 million, and in 2025, 1.38 million participants. The SAT, on the other hand, managed to return to pre-pandemic levels with approximately 2 million participants in 2025. The pressures to maintain student participation are very real for the ACT. The SAT’s rebound was helped along by its shift to a fully digital format and its ability to administer tests during school days, but the numbers indicate the ACT is slower to recover.

In April 2025, ACT launched its new Enhanced ACT exam, a shortened (and digital) version of the original ACT directly competing with SAT’s digital exam. The new version also prioritizes student success. It allows greater access for students, more flexibility, and better insights into a student’s college readiness. It seems that the recent acquisition is another chance for the ACT to grow and support future learners on a mass scale.

What Does the ETS Acquisition of ACT Mean for Students?

Both organizations were clear that families should not expect any disruptions to scheduled test dates, score reports, and the exam itself.

In the short term, this could be good news for students. With ETS’s resources behind ACT, families may eventually see more testing dates, testing sites, and stronger technology behind the exam experience.

Long term, the merging of these two organizations raises bigger questions about where the ACT is headed. The SAT and ACT have been the two major college entrance exams for decades, but this acquisition could eventually push ACT toward a different role, perhaps more closely tied to school-based testing, career readiness, or workforce assessment.

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